'Sell scrap metal for no more than 1 million VND per car'

That is the opinion of Deputy Director of the Department of Public Asset Management (Ministry of Finance) La Van Thinh, regarding the liquidation of public vehicles of ministries, branches and localities.

The story of liquidating 264 public cars with a remaining value of 390 million VND, while the new purchase price of these cars was 79.68 billion VND, is causing a stir in public opinion.

'There are still many public vehicles with remaining value of only 0 VND'

On the morning of June 30, Deputy Director of the Department of State Asset Management (Ministry of Finance) La Van Thinh said that the figure of 390 million is the remaining value of the vehicles, while the total amount collected after liquidation and auction is different. However, he currently does not know the exact figure because it is scattered across units.

“The above figure is the remaining value of 264 vehicles in the accounting books of the State Asset Management Department. The number of public vehicles liquidated from January 1 to June 17 is scattered across ministries and branches. We do not collect information on the amount of money collected after liquidation. Even selling scrap metal does not sell for more than 1 million VND per car,” Mr. Thinh shared.

This afternoon (June 30), the Ministry of Finance will announce information on the liquidation of 264 public cars.

According to Mr. Thinh, when the car is old and cannot be used, the locality, ministry, and industry will propose to sell it. If the conditions are met, the Ministry of Finance will allow the liquidation.

The Deputy Director of the Department of State Asset Management confirmed that in the database of the Ministry of Finance, there are still many cars with a remaining value of only 0 VND. These are cars that have been in service for about 17 years.

"The remaining value is only 0 VND, but we are so poor that people still have to use it," Mr. Thinh emphasized.

"I'm so poor that the rule is that the car only depreciates 7-8% per year."

This person added that the Ministry of Finance regulates standards, norms and vehicle management and usage regimes. To liquidate a vehicle, it is necessary to follow the provisions of the law on depreciation time. Only vehicles that have been used for 15 years or have conditions such as an accident that cannot be repaired can be liquidated.

After the decision to allow liquidation is made, the heads of ministries, branches and localities will use that as a basis to sell their vehicles.

When the liquidation is completed, the collected amount must be updated into the database to delete the vehicle from the data, and the Ministry of Finance will have specific information about which vehicle, what license plate number, original price, remaining value, and liquidation price of that vehicle.

“The law clearly stipulates how much each type of vehicle depreciates each year. Before Circular 162, each vehicle depreciated 10% of its value per year. After that circular, since 2014, because our country is so poor, the annual depreciation rate has been set at only 7-8%. That means each public vehicle must be used for 15 years before it can be liquidated,” said Mr. Thinh.

This person added that the Government has Decree 17 regulating auctions so that people can organize them according to the principle of transparency.

“First, leaders of ministries, branches and localities must re-determine the value of the car according to the market price, then publicly announce the starting price for the auction. Whoever offers the highest price will buy it. That amount will be paid to the state budget,” said Mr. Thinh.

Director of the Department of Public Asset Management (Ministry of Finance) Tran Duc Thang informed that this afternoon (June 30), the Ministry of Finance will have official information about this matter.

According to Zing.vn